BMO reports Q1 profit rise to $2.49 billion despite severance charge

BMO reported first-quarter profit of $2.49 billion and recorded a $202 million pre-tax severance charge, while executives said they are seeing rising stress among lower-income Canadian consumers.

BMO Financial Group reported higher first-quarter profit and revenue while also taking a sizable severance charge and noting pressure among some customers. The bank said Q1 profit was $2.49 billion, up from $2.14 billion a year earlier. Management said it has reduced headcount and is pursuing expense management alongside investments in technology and talent. Executives described visible stress at the lower end of the Canadian market, particularly in credit-card portfolios. Key facts: - BMO reported Q1 profit of $2.49 billion, up from $2.14 billion a year earlier. - The bank took a $202 million pre-tax severance charge and reported headcount down by 678 to 53,035. - Provisions for credit losses were $746 million for the quarter, and impaired provisions for credit cards rose to 5.97% of that portfolio. - Revenue for the quarter was $9.82 billion, and executives said they see consumer stress concentrated at the lower end of the market. Summary: The bank posted higher profit and revenue while recording a severance charge and higher credit-card impairments, and executives said pressures are more visible among lower-income customers. Undetermined at this time.